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The Launch of Hi Delivery: Keruyun Boosts Business Model Innovation of Haidilao Hot Pot

Haidilao Hot Pot has been renowned for its luxurious services and achieved great reputation among customers. As a leading catering business in China, Haidilao has attracted much attention at home and abroad. Haidilao has been insisting on direct management since its establishment, which not only guarantees the quality of products and services, but also maintains standardized management. However, like other direct marketing enterprises, one outlet can only serve a limited number of customers and presents a high customer flow in peak period of dining. In this case, a wait is unavoidable.

It is reported that it averagely takes three hours to wait for a table available in peak periods. With increasingly rapid social development, time becomes especially valuable .So customers with a tight schedule or far from an outlet are not always willing to wait for three hours, though extraordinary services, such as manicure, free snacks and folding paper stars for cash, may relieve some anxiety. Fortunately, the rise of hot pot delivery effectively solves the problem.。

Traditional Delivery Services and Hi Delivery

 

Business Model Innovation

 

The traditional form of delivery is integrated with eat-in services, in which a vendor takes care of both customers in the restaurant and delivery orders. In other words, a small cash register not only takes orders and collects money for eat-in customers, but also takes delivery orders on different online platforms, and then allocate them to the kitchen and relevant delivery persons, so as to maintain the complete process. In the event of a high customer flow, it takes averagely one or two folds longer to complete each order, resulting in a multiplied decline in total order-receiving rate. A drain of customers will virtually occur.

Around the globe, overseas catering brands with mature delivery services have quickly occupied a large market share since they entered the Chinese market. For example, leading catering brands in China’s food delivery market, such as Pizza Hut, Domino’s Pizza and Champion Pizza, occupy a majority of market share for a long time, which depends not only on releases of new products, but also on their advanced management mode, i.e., independent management of food delivery. As an international catering brand, Haidilao also adopts such mode: outlets only serve eat-in customers, taking or distributing no delivery orders, which are allocated by delivery stations in different districts in different provinces and cities; while delivery stations are responsible only for dealing with delivery orders, but not eat-in or take-out orders.

 

Smart System Application

 

Traditionally, delivery orders are taken in a non-systematic way, that is, one-to-one services on multiple platforms. When customers place their orders via the official website, telephone, third party platforms and other channels, a vendor will receive order prompts on more than 5 order-receiving applications and have to take these orders manually. In other words, if a staff member has not noticed some of these orders due to lapse of attention, customers will have to wait for a long time, which easily causes order loss. Meanwhile, a vendor has to place several order-receiving machines on the cash register and operate them respectively. In settlement, they need to check the bill statements one by one, carry out accounting based on consolidation of these bills and examine the inventory on the same day. There is another mode called “false linkup”, in which all food delivery platforms seem to be integrated in one machine, but such integration is false because vendors still have to log on multiple accounts such as the official website, WeChat, ele.me and waimai.meituan.com, refreshing and checking them one by one, and taking orders and developing statements separately. The only change is a decrease in the quantity of hardware.

Such a multi-hardware mode requires different servers and personnel for operation and management, showing obvious weaknesses: complex operation and a waste of time; more importantly, it will cause order omission, longer order-receiving time and lower delivery efficiency. In the long run, problems such as lower customer satisfaction, decline in the number of orders and less revenues will occur.

To avoid such weaknesses, Haidilao, as an international catering brand, has adopted Keruyun’s smart catering management solution that integrates software and hardware. By simply logging into Keruyun system via the smart terminal OnPOS mini, a vendor can directly receive orders from all platforms, including Haidilao’s own ordering channels such as official website of delivery, telephone, APP and WeChat, as well as third-party delivery platforms, like waimai.meituan.com, ele.me and waimai.baidu.com. It takes less than 10 seconds to process a single order, raising the order-receiving efficiency by two folds, reducing the personnel required by one person, and basically eliminating order losses, omissions and errors.

Keruyun Provides Hi Delivery with Technical and Smart Support

 

Front-end and Back-end Application

 

At the front end, customers may place an order in five forms: ordering hotline of Haidilao, the module of “Hi Delivery” on the official website of Haidilao, official WeChat account “Hi Delivery” developed by Keruyun, Haidilao APP and third-party delivery platforms (such as waimai.meituan.com, ele.me and waimai.baidu.com).

Taking ordering via WeChat account in Wangfujing for example, a customer can place an order in the following steps: follow the WeChat account of Hi Delivery and select Wangfujing Outlet, enter the menu page, add cookware, dishes, sauces and other items desired to the shopping cart, and then enter the order confirmation page, add time of delivery, receiver address (automatic positioning may be used, with an error <=20m) and special requirements (if any) at the bottom, and then fill in the invoice title. It is worth mentioning that compared to the WeChat ordering systems developed by other companies, a customer may alter an order which he/she has placed in “Hi Delivery” system developed by Keruyun. If a customer wants to alter an order after it has been placed, the customer can directly click “Continue to Order” at the upper right corner of the shopping cart. The order is placed upon online confirmation and payment.

At the back end, the delivery stations of Hi Delivery receive orders from all sources via OnPOS mini and are responsible for food preparation and delivery. It is simpler to receive orders at the back end: a delivery station within the area of service will receive the order immediately (automatic or manual printing?) and then the staff prepares the food and delivers it according to the information on such order from OnPOS mini.

 

Open Platform

 

Keruyun provides products and services at three levels: the first level is the SaaS product group carried by smart terminals, as is mentioned in Front-end and Back-end Application; and the second and third levels are the open platform and big data value-added services. Hi Delivery employs services at the second level, namely the open platform, mainly presented by open ports. Simply put, Hi Delivery can insert self-built programs in the system at any time based on future business and management demands, so as to occupy market share with the soundest management tool.

 

Cloud System

 

Cloud system is not included in the products or services of Keruyun, but is its core value, and the SaaS product group is achieved based on cloud system. Therefore, owing to application of the cloud technology, Keruyun has realized different functions by turning multi-machine operation to single-machine operation, optimizing the demand of multiple servers by applying a single server and upgrading hardware storage to cloud storage in high-volume database…The most direct benefits for Hi Delivery are less hardware cost, space saving and guarantee of data integrity and security.

 

Technology is Core Value

 

Selecting the technical team is more reliable than selecting products since the quality of products is guaranteed by technology,” said a person in charge of Hi Delivery, “the reason why I choose Keruyun is its technology. It has an R&D team of nearly 300 persons, which can guarantee iterative development of products and the value of sustainable use.

Keruyun has branches in 34 large and medium-sized cities nationwide to provide outlets with a dual service mechanism including local engineer visiting services within two hours and 7*12h 400 hot-line remote service, so as to guarantee efficient operation and real-time iteration of the system, and provide continuous technical support for the front-end application.

Explosion of Food Delivery: the Real Meaning Lies in Cost Reconstruction

Delivery has become an organic part of the new business model in catering services. Three out of ten Chinese people use delivery service. Over the past year, food delivery scale has increased sharply by 300% and has reached a market of more than 300 billion yuan, accounting for 10% of the total catering market. Compared to 30% in the US, there is still a large development space for food delivery in China, but the momentum is already very positive.。

The rise of food delivery services not only provides convenience for an increasingly number of users, but also increases earnings of vendors. In this sense, it is a form of business reform in catering enterprises,” introduced by an insider. Food delivery services can neither replace nor supplement eat-in services; it represents cost reconstruction. Delivery stations of Hi Delivery are responsible for distribution of all orders in nearby areas, and their number and area just need to satisfy use requirements; delivery stations require no service personnel, but order-receiving, kitchen and delivery personnel; ingredientls are purchased by the outlets to share the cost; however, they will never scramble for resources, occupy service personnel and time or have internal friction with outlets, thereby eliminating the problem of “high input, high consumption, high pollution but low income

As far as we have learned, Hi Delivery has received multiple orders with single order amount exceeding 3,000 yuan and delivery’s share in total revenue continues to increase, making it a new point of growth in the catering industry. The cooperation between Haidilao and Keruyun in building a complete delivery management system will promote the development of food delivery services and greatly quicken the development of the independent delivery mode.

 
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